Thursday, August 13, 2009

Another Nail in The Coffin

A recent anonymous comment on this site inquired or asked "Did We Give Up". The comment inquired why we failed to respond or post comments concerning Microsoft's last quarterly earnings. Well, the comments can be viewed at http://www.networkworld.com/community/node/43995

In response to the question "Did We Give Up?", the answer is no. We have been engaged in other projects that have consumed time and attention. However, if the question was "Have you lost HOPE?" the answer would be "Yes".

The campaign was initially launched in mid-December 2008. It gained attention from various blogs. It secured interviews with various blogs and reporters, including an article with PC Plus magazine. It obtained support from various Microsoft employees (who we thank for offering analysis and feedback). It also secured support from various shareholders.

Unfortunatley, it appears evident that Microsoft's fate is secured. Regardless, of conducting analysis and securing support, regardless of other sites indicating the same analysis, it appears Microsoft is headed on a path of no return. To quote the Phantom of the Opera "Microsoft has passed the Point of No Return".

Initially, the campaign indicated that Microsoft is relaint on its cash cows which will eventually fail to provide the desired revenue. The campaign indicated that Microsoft required a "New Strategy" to alleviate this dilemma. The campaign referred to the growing trend of SaaS, handhelds or mobile, and also online.

Despite trying to influence change, despite media attention, The SLT continued with its "Strategy". This resulted in the well publicized reality of a 30% decline in revenue. The primary direct result of less OS revenue.

The reality of the above article is that Microsoft is confronted with losing additional revenue.This will potentially have a substantial impact on company revenue. Word is perhaps the most recognised and utilised product in the Office Products. This is subsequently another nail in the coffin.

The company is losing revenue with OS. It has lost Word. The trend is moving towards Saas and netbooks, which offer less revenue.

It is languishing in the online sector. The Yahoo and Microsoft deal will still only provide 30% share compared to Google controlling over 60%.

We don't believe the campaign has the definitive answers. However, it secured support from reporters, employees, shareholders and analysts. Microsoft employees provided analysis and feedback concerning the "New Strategy".

We have lost Hope that the SLT will ever understand the dilemmas confronting the company and listen to outsiders (this includes analysts, reporters, shareholders). Therefore, it appears evident that Microsoft will continue to loss revenue. It will fail to innovate. It will fail to recognise trends. It will fail to become relevent.

It appears more evident and understandable why msftextrememakeover gave up and Mini Microsoft creates fewer posts. The SLT has refused to listen to legitimate complaints and solutions posted on Mini Microsoft for years. The SLT appear to be blind and oblivious to the realities confronting the company. Unfortunately, it is to the detriment of employees and shareholders.

The SLT has failed to create shareholder value for a decade. It has failed to create shareholder value for a decade with the shares trading at approximately $23 per share or the same level for LONG-TERM. It has failed to listen to complaints for a decade. It has made false promises and ignored reports from other parties (newspapers, blogs, reporters) for a decade. Sadly, it appears obvious that the SLT will continue its "Strategy" adding more nails to the coffin until its time for the shareholders and analysts to deliver the eulogy.